Scatec, ACME put 900MW solar project in India on hold

Its construction is expected to start in 2022, along with other backlog projects.

Norway’s Scatec and India’s ACME put on hold their 900-megawatt (MW) solar power plant in India due to the solar panel supply constraints and import duty concerns.

“Scatec and Acme have decided to put the 900 MW project in India on hold due to lack of supply of domestic solar panels and a 40 percent import duty on solar panels to be imposed from 1 April 2022. Due to the above, the project has been moved from backlog to pipeline,” Scatec said in its 2021 fourth quarter report.

“Construction start of the backlog projects relies on final governmental approval processes, completion of the project finance processes and component market development. Based on the current status of these processes it is expected that construction start for all backlog projects will be in 2022,” it added.

Scatec and ACME entered a partnership in June 2021 to develop the solar power plant in Rajasthan in India, which has an estimated total capex of $400m.

The project  holds a 25-year purchase power agreement with the Solar Energy Corporation of India which was secured in a tender in 2018, Scatec said in its statement last year.

Its construction was expected to start in 2021 and to be completed this year.